Jun 18, 2021 ●14 min read
How does Modern Technology Impact Banking?
Banking is one of the oldest businesses in the world but it is not the same at all as it used to be. It has evolved by the passing years. Modern technology has transformed it totally in recent years. The thought of visiting a bank used to give nightmares. Long queues, hours of waiting and huge amounts of paperwork were the things that could not be avoided whenever you needed to visit a bank. Use of modern day technology has changed everything. Entry of NBFCs has further revolutionized things. Let’s have a look how modern technology has impacted banking:
Connecting to their financial data has become easier for the customers as well as banks. Online banking has made it possible to connect to the data from anywhere and at any point of time. It ensures speedy transactions to carry out business and other activities too. Banks and consumers, both are benefiting from the technology advancement.
Using the data available online, it is possible for businesses to track the successful strategies which helps them to decide where and when to invest, where the interest rates are higher, etc.
Development of mobile applications by banks and non-banking financial companies and faster internet connectivity has made it easier for the consumer to access their financial accounts sitting in the comfort of their homes, shops or offices. The new generation of customers like it to have full control over their finances and deal with them directly.
Shopping clothes or groceries, ordering food online, paying your EMIs, paying school or college fees, and so on. All this has become so easy and can be done in just a few clicks using these mobile apps or using net banking.
Life has become so fast paced that you have no time to visit banks and other services personally and wait for long hours. Automated services are helping people to pay their bills, selling and buying stocks, investing in mutual funds, etc. By using automated services they save their time and energy both. This also helps banking and NBFCs to know their existing and potential customers better.
With the help of innovative technology, the banking sector has become more transparent. It helps the customer to make smart investment decisions. Terms and conditions have been made easy and understandable so that the finance provider and customer both could understand each other in a better way. Vital information can be uploaded using the special softwares while selling or buying properties etc. so that everything is clear and rates and conditions can be compared.
Use of chatbots and Artificial Intelligence has made the whole banking process so easy, quick and hassle-free. Gone are the days when one had to stand in long queues, do loads of paperwork, make multiple visits to the banks to get their work done. Net banking and mobile banking have made the banking related tasks hassle-free. You can solve your queries sitting at home, open your bank accounts, make fixed deposits, get your loans approved and a lot more without any stress and without visiting your bank or NBFC. all these things can be done even from the remote locations of the country.
Previously all the work related to banking was done by the humans. So there were many chances of mistakes and human errors. Banks were lacking in accuracy. Introduction of computers and other modern day technologies have made these tasks easier and more accurate. Data is protected more efficiently, transactions are safer and there are very less chances of data being misused.
Vast data is available these days with just a few clicks. So, banks and NBFCs are using this data to customize their offers for individuals according to their needs. It is not possible that one offer may suit all the customers. It is important to customize the services according to the area and the individuals. Offers become attractive, useful, easy to understand and the customer can avail the opportunity to the best of its use. Customers can also now compare the rates and offers available at different platforms and decide accordingly.
Use of modern day technology has made it less riskier for banks and NBFCs to recover their loan amounts. They can check the credit score and credit history of the customer before disbursing the loan. Similarly , customers can also compare the rates, read the online review of the companies offering loans and decide accordingly.
On the other hand, with the help of software, the risk taking capacity of any individual can be analyzed and then a list of stocks, mutual funds, bonds, etc. can be offered.
It is quite evident that modern technology has transformed the banking sector completely. Interactions with banks have become easier. Without visiting your banks physically, you can email your documents or you can upload them on their website. Thanks to the Net banking and mobile banking, customer satisfaction has enhanced and works are done quicker and without any stress.